Academicians fills government’s slot in the monetary policy committee

Government has appointed three academicians from the country’s renowned institutions as its nominees to the newly formed Monetary Policy Committee (MPC). Chetan Ghate, Professor at Indian Statistical Institute, Pami Dua, director at Delhi School of Economics and Ravindra Dholakia professor of IIM Ahmedabad are named by the government as its three representatives to the Committee.

The MPC is a newly constituted body for taking decisions on setting the repo rate. It was established to facilitate monetary policy decision making in the new inflation targeting regime. Governor of the RBI is the Ex – Officio Chairman of the MPC. Of the six members, government and the RBI will appoint three each.

Chetan Ghate is working at Planning Unit of ISI Delhi and has experience in macroeconomic policies including monetary policy. He also worked with an RBI Committee on Monetary Policy Framework.

Pami Dua is a specialist in business cycle analysis and is very good in time series econometrics which is the leading tool to analyze monetary policy.

The third member Ravindra Dholakia is serving at IIM Ahmedabad since 1985 and has rich experience in macroeconomic policy analysis.

As per rules regarding the formation of MPC, no member should have any financial or other interest that prejudicially affects his functions as a member.

The three members from the RBI are Michael Patra and R Gandhi besides Governor Urjit Patel.